For The Kids: Trump Creates Blind Trust For Control Of The Trump Organization

Since earning the title of president-elect on Tuesday, there have been questions and speculation as to who would run Donald Trump’s business while he concentrated on running the business of the country.

Prior to Trump’s scheduled meeting with President Obama on Thursday, Trump attorney Michael Cohen put an end to the speculation.

Cohen said a blind trust had been established for the ownership of the Trump Organization. The daily operations are to be run by Trump’s three children — Donald Jr., Ivanka and Eric.

A blind trust is a common tool for elected officials to avoid conflicts with their private financial interests. Under the terms, an independent trustee oversees the trust, and the owner cannot influence the decisions made about the trust.

In most instances, a blind trust is set up for a portfolio of stocks, bonds, and various investments. Trump is unique from most elected officials because he owns real estate, hotels, golf courses and the like.

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Part of the reason Trump decided to run for president this year as opposed to four years ago was the control over the business.

“That’s why he really didn’t run in 2012 because they were younger by four years,” Cohen said. “And they didn’t have, I guess, the experience, maturity that he felt he wanted to leave a $10 billion company to. Now he does. He’s very comfortable with them at the helm and the people that will surround them.”

New Jersey Gov. Chris Christie, the head of Trump’s transition team, said Thursday on NBC’s Today that the children were prepared to run the business in their father’s absence.

“My sense is that Donald’s children, who are huge parts of running the business, intend to run the business,” Christie said. “…because the guy who did run the business has now got a new job.”

Admitting that, regardless of the steps taken, Trump will not be successful in satisfying all of his critics, Christie stressed that Trump’s interests now lie in “fixing America.”

“He wants to make America great again. He wants to put Americans back to work. He wants to fix the economy. He wants to create jobs. And he wants to ensure national security for everyone,” Cohen said.

The “blind trust” was put into place to eliminate a conflict of interest. But some legal experts call the move “window dressing.”

Kenneth Gross, a political and ethics expert with the firm of Skadden, Arps, Slate, Meagher and Flom remarked, “Turning the business over to his kids will free up his time but it does nothing to resolve conflicts of interest.”

He added, “A creator of a blind trust is tagged with the knowledge of the assets put into the trust, and in terms of conflicts his children’s interests are co-extensive with his self interest.”